Rapture Economy
Sitemap Rapture's Economy See Also Existing_Businesses See Also Types_of_businesses_City_could_have See Also Vending_Machines See also Shops_and_Locations See also Crash --- --- --- --- --- 'Rapture Demographics (As Compared to a Typical US City) ' : No Welfare and Few charities. Thus Less bums (Ryan wouldn't let in too many people without skills or inclination to work, to start with). Few Leftists (Ryan has a revulsion to parasites and foisterers of parasitism and collectivists in general .,.. He has THEIR number.) More craftsmen, more Entrepreneurs - there won't be many big industries IN Rapture for narrow specialized mass-production skills (so less organized "Labor" adherents). Fewer Old people (productive people would be wanted, and the expectation/unknowns from Rapture's culture and the bother of picking up and moving would dissuade many). Rich old people looking to escape growing social poisons in the Surface World would be an exception. There would be MANY People who believe more in Individualism (rejectors of Socialism/Welfare State/Communism). Perhaps more Artists -- but maybe not as many as you might think ... Rapture Artists Dont Quit Your Day Job as most artist barely make a living from it (and Rapture has a limited population AND NO GOVERNMENT FUNDING OF 'artists'). In general there would be less a burden of non-earners. The Result could be a general higher standard of living (higher production equals more to buy). Similar things were happening in America during that era. Less Mass Production would mean higher general prices for non-consumables (but immigrants would be able to bring many possession with them when the came to Rapture). Population demographics would shift as Rapture-born children were added to the population. --- --- --- 'Economic Distress (the Earlier Economic Depression or Recession) : ' Apparently Rapture had a recession/depression in the early 1950s as the result of city construction largely ending. Caused by some job loss/readjustments, but large disruptions of money flows to all the things (directly and indirectly) involved in that construction business. As mentioned before there were fewer than implied unskilled construction workers and more had transfer skills, but there still would be a labor glut as the construction shutdown and the supply pipelines ceased. Crash - Do the same mechanisms operate in a Rapture microcosm (20000-40000 people)? versus a larger real system - like the American Economy ( 1930 census 123,000,000) ... ~3000 times larger. Its still largely a phychological effect that can exaggerate negative effects. Would there be less 'fluidity' in the financial market to disallow an equivalent of the 'freefall' situation. 'Crash' - would it be slower than in the real world - chance for recovery of partial value for investment (if people/institutions had learned anything from the unsecured/poorly secured loans in the late 20s). Rapture wouldnt regulate speculation, but would have to enforce protection of law measures for contracted 'safe' investment. Lesson about speculation margins - sell-off terms 'margin call', bankruptcy/security conditions ( a general realization of the 'risk' involved, though stupidity cant be eliminated). What is the money in Rapture based on ? Specie ? Value derived from some precious metals in Rapture ? Who issues money, and how much, and could the Money Supply fluctuate (inflation/deflation) ? Is there enough money in circulation that is 'backed' by something real? Value might be based on a basic utility power quantity - Rapture Dollars would ALWAYS be accepted as payment (kind of like Civil War Geenbacks (paper money) that were made acceptable largely because they WOULD promised to be accepted to pay all government taxes/fees). Banks offer loans (middlemen who match up lenders/depositors and borrowers) but prefer to have some kind of contractual security (with risk costing a higher interest rate). Unregulated Banks offer risk to lenders for higher 'cut' - with lower chance of recovering on loan failure (even with borrower's security being surrendered). Many people who came to Rapture brought their life savings, which was used to pay for construction and converted to ownership in Rapture property. Taxes would be low (a small uninvolved government paid via Use Fees). Some stagnating properties (during economic downturns) may be sustained with minimal expense, after utilities turned off. Banks setup mortgages with security (building/holdings owned by the Bank if bankruptcy happens). Companies can also be reorganized after going into receivership. Firesale acquisition of 'company' by new investor who would be buying to utilize and reactivate. A bankrupting company defaults and the Bank owns whatever assets the company had - tools/material (depending on the loan deal). There can be only limited market in the Rapture microcosm, so there is limited production competition. This means if one company goes out of business, and what was produced is needed (strong market demand), then there is an opportunity to reopen/replace the business. The employees are likely still around and there is a high possibility that production could resume. Prices could go way up in a shortage, depending on the utility of/demand for the product. Rapture has few 'large' industries', and limited automated production - so restart of production might be not so complex. More small specialty companies (with multiple product sources competing). Less-demanded/less-needed (optional) products consumption would cease , while demand for basics (including services) would continue. How large could a city-wide credit bubble be ? How much credit was in play as a percentage of the economy ? "Let The Buyer Beware" should be a little better understood (the whiners in BS1/BS2 would really only have been a small minority, and few would join an 'Atlas' anarchist). Some people like Prentice Mill portrayed as 'wiped out', would actually still have been one of the richest men in the City, if even a fraction of his Ryan-requested 'Loan's were secured. (a bit of contrived BS there in that plot item - very little surface understanding of basic economics on the writers part). Stock Market (stock exchange) or more limited 'share' system as a scled down Rapture-sized equivalent ? (less volatility...) Money supply - how is it run/managed? Money doesn't disappear, credit does (money still available to be loaned, if the owner accepts the risk) Where does money go/wind up - people who have it will eventually spend it or invest it, but can become cautious when the investment climate becomes dodgy. Banks 'Savings' account customers get repayment from liquidated mortgages(and whatever other security required by the loan), and bankrupt company procedes, so the saver's savings have at least some monetary recovery (perhaps alot, depending on what the loan security was). What size of non-speculative savings in Rapture ? (and how many people just save it in a deposit box at the 'Bank' as well as 'Safes' at home ??) A bank has to loan out the 'saved' money to be in business - so what would those loans be for to be 'safe enough' in the customers minds ? I suppose Hephaestus Power (a classic utility) might be acceptable, but the loans would go to expand the infrastructure and not have high interest (and not be limited as it is tied to city expansion and in economic distress the utility use declines). --- --- --- 'How many Part-time Artists/Scientists/Inventors/Businessmen did Rapture have ? ' : You have to setup and work to 'produce' before there is a viable 'Product' to sell (and possibly never, or none for a long time). Starving artists is not just a 'quaint' phrase. Some 'hobbies' may develop to be more directly a second job/business with product/service able to be sold continuously (and eventually grow to be a citizen's primary work). Numerous 'kitchen table' inventors in Rapture... (many more than in the normal world, probably). How does this 'inventor' person live in the meantime ? A Ordinary Job and the other thing is done in their spare time. Patronage possible, but limited. Not everything leads to profit. Though there are other reasons someone gives patronage - so the IS a potential for all kinds of interesting things to be found/developed in Rapture. --- --- --- --- --- . . .